internal control and risk control define the framework for managing the various risks that the Agency incurs

Agence France Trésor has set up the appropriate organisational structure and defined procedures for this purpose.

Two levels of internal control

Banking regulations set rules that call for the Agency’s line units to establish internal control systems.
Second level control is performed by the Internal Control and Risk Management Unit, which ensures compliance with the framework for procedures and risk limits. The Unit prepares reports on these topics for the Agency’s senior management.
Risk management also requires oversight of dealings with public- and private-sector institutions and bodies that exchange information with the Agency and play a role in settlement of transactions. The partners in question are the Banque de France, Primary Dealers and Euroclear securities settlement systems. AFT is also in constant contact with the Ministerial Budget and Accounting Control Department, which keeps the accounting records of its transactions.

Two external audit procedures

The law requires Agence France Trésor to submit to an annual external audit of its transactions relating to management of the government’s negotiable debt and cash position, hedging the government’s financial risks and debts transferred to the government. An annual audit is also performed of the oversight of financial risks and prudential procedures for these transactions. In addition, Agence France Trésor has drawn up a multi-year audit plan that gives it the benefit of outside expertise and skills for its risk monitoring and management objective. Since 2006, Agence France Trésor has also been audited by the French Government Audit Office as part of the audit of the central government financial statements.
Various aspects of the Agency’s activities are also subject to unscheduled audits by internal auditors from the Ministry for the Economy and Finance (Inspectorate General of Finance, General Economic and Financial Audit Department).